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Worldwide Exchange

News/Business. Ross Westgate, Kelly Evans. Ross Westgate and Kelly Evans consider the business stories that have global significance. New.

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U.s. 38, Greece 21, Brussels 13, Us 12, Spain 11, Eu 11, Europe 8, Apple 7, China 7, Sandy 6, America 6, S&p 6, Obama 5, London 5, Italy 5, Germany 5, Australia 5, Uk 4, Samsung 4, United States 4,
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  CNBC    Worldwide Exchange    News/Business. Ross Westgate, Kelly Evans. Ross Westgate and  
   Kelly Evans consider the business stories that have global...  

    November 12, 2012
    4:00 - 6:00am EST  

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. this is "worldwide exchange." i'm ross westgate. japanese gdp shrinks leaving the economic ministers to say the economy may already be in recession. one step forward, two steps back. greek lawmakers approve 2013 budget, but germany warns brussels aren't likely to sign off on the next tranche of aid at their meeting today. lorenzo tells cnbc greece needs more time and he's urged europe to extend the company's debt maturities. plus president obama will get a
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lot of input this week from civic leaders on how to tackle the looming fiscal cliff before he sits down with house and senate leaders on friday. we're up and running for a fresh week of global business news. we'll hear from kelly fairly shortly. also on today's program, we'll be in brussels ahead of the important euro group meeting. focus there on greece and the eu budget. after the weekend, talks collapsed. and the annual world energy outlook report in an hour and plus analysis of where oil prices can be headed. and best buy gets set to join the tablet wars with it insignia flex. what can it offer to customers that the ipad, kindle 5 and surface can't. the first japanese government may be forcesed to lower its outlook for the economy, this after reporting an 8.9% fall in
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third quarter gdp. at this rate, already in recession. the government's attempts at a moderate recovery has been made more difficult by tensions with china. now pressure is even mounting from the boj, but analysts say the central bank likely to hold off until after the federal reserve is due to meet. joining us for more is global chief officer of global equities. and head of japanese research at jpmorgan securities. i suppose the question is whether this contraction here in the third quarter will be followed by another one in the fourth. >> it looks quite likely. you've got bad news on exports continuing and you've got on on top of that now a contraction in public spending beginning to come through. the boost we got after the weak construction from the disaster,
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that's now bapeaking out. so public demand and economic demand likely to drag us. >> and how much is domestic relying on government support? >> the domestic private side is actually doing really differencely okay. one data point here, you find that mortgage lending is actually growing now for six or seven consecutive months and that shows you that they're opening their purse spritrings little bit. but overall you're really looking at slight contraction in the economy. >> what extra pressure does this put on the government and the bank of japan? >> you're right be the focus now will be on policy. and the key here is not so much in my opinion the bank of japan. yes, the bank of japan can do a
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little bit more. that's all fine. but the real focus is on on fiscal policy. prime minister noda does want to compile a supplementary budget. so that's the focus going forward. >> when you look at the economic numbers and the performance of japanese equities, mismatch, look good, bad? >> japanese equities has been one of the weakest in the world. when you see ga's economic numbers, i think you can see why. and let's not forget the export sector has been a key part. we see the problems sharp and panasonic and it's all there. >> all being hurt by the end, but doesn't seem to be anyway out of the end to weaken. >> well, the bank of japan is now trying to adapt unorthodox quantitative easing policies. so far it hasn't worked.
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but if you compare 240es policies compared to what the fed has done and the bank of england, it's just not enough. >> yes, but do they have any control over the occurrences city? >> by themselves, they wanted to, they could debate and could depreciate their currency. the fact of the matter is that they don't really want to do that. the bank of japan is more germanic in its approach. they don't think that money on its own can create economic growth and personally i must say i've got a bit of sympathy with that. >> i think the real question is japan really going to continue with this kind of negative economic outlook and whether it really can continue with a growing debt to gdp profile and whether the bank of japan will stick in its germanic root. >> you're right. the key issue is where is
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growth, where will growth come from. right now it's sort of easy, we have a global slowdown, particularly capital goods. that's hitting japan's exporters quite severely. question, when are we going to get a concerted government package that is pro economic growth, that involves, yes, the bank of japan, but more importantly, it involves better rules, better regulation. for example, there's a shortage of about 700,000 nurses here in japan. when are we going to get the deregulation to actually allow those unemployed youth to come into the economy as the markets get deregulated. that's what we're waiting for. >> how long do you think we'll have to wait? >> well, we need a government that is actually strong and consistent. as you know, jockeying for position, when is the next election going to be. it will be over the next four to five months. until we have a new government,
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these really needed deregulation policies aren't likely to be fort coming and when you look at japan, you're basically looking at the fortunes of the exporters, china, currency and america. >> okay. thanks for that. dominic will stick around. we'll have more on january pjapn in the show. first over to china. the economy may have performed weste better, but liquidity a big issue. outstanding yuan loans came in smaller than consensus. still over the weekend, the country did report a solid trade surplus. the biggest in 45 months for the month of october. eunice has more on this report from beijing. >> ahead of the leadership transition, chinese policymakers are painting a rosy picture of
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the economy. they said it's turning a corner and that he's confident the country will meet its full year economic target of 7.5%. the export data for october also came in surprisingly strong thanes to better than expected sales to the united states and even europe. it's important to note, though, that trade officials see challenges ahead. most recently, over solar panels. the u.s. has approved steep trade tariffs, a move officials here say could backfire and cost american companies this market. >> translator: someone asked me are you in a trading war with the united states? i said no. i hope we can sit down and discuss and try our best not to get involved in trade war. but i must say when others tackle businesses, i have to protect our businesses. >> policymakers also attempted to ease concerns about a brewing debt crisis here. >> translator: the bad loans
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have been on the rise this year, mostly due to the difficulties in management of some industries. but the overall bank as a quality stable and the risk is under control. ratio almost the same as that at the beginning of the year, far lower of the world's major banks. >> regulators and bank executives said that chinese banks have spread the loans across several different sectors including steel and solar panels help to go mitigate the risk, however there is still widespread concerns that overcapacity in several of those industries could undermine china's future growth. >> democrat niominic, chinese ee a dreadful underperformer. i know you play china through the west. are you playing it at all? >> chinese equity market has been very disappointing, but there are signs it's beginning to turn. i think obviously policy which
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had been restrictive for about 18 months had a big impact on the equity market. that seems to be turning a little more positive for equity earnings p. and i think that exit number is actually quite significant. 11% growth in export despite the fact that exports to europe are down 8%. there does seem to be some momentum beginning to develop in the chinese economy. >> we need sort of a trend. >> we certainly do. and i think that those figures will disappoint those looking for a rebalancing of the chinese economy. because it was interesting that imports are only up a couple%, so it looks like the export is still there. >> interesting to see how the change over plays into things. more on that on thursday. >> but even whether or not we get an immediate policy response, those who know china better than i, i think that will take several more months. >> the greek parliament has
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approved the country's usaustery budget hoping for the next tranche of bailout money. but european officials including schaeuble say it's unlikely they'll sign off on the aid at the meeting in brussels. without the 30 billion euros, greece could default this week. it's ongoing. it doesn't go anywhere. we still live with it. what do you do with it? >> and think we'll be living with it for some time. i don't think greece will be allowed to default this friday for the sake of a couple of extra billion dollars. what's most disturbing i think is how the debt to gdp figures for greece just continue to deteriorate. the imf and the ecb are arguing about whether the 2020 number should be 120%, 125%, but the reality is next year it will be closer to 200%.
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so i think you had a speaker earlier today who is suggesting it would have to be another debt restructuring. and i think that's going to happen. >> we're now seeing the economy of germany being dragged a little bit into the mud. you take a look at stocks, the dax up 20%, ftse only 3 about.5%. so if you were going to weight yourself right now, what do you do? >> i think the message of this year, and i'm sure it will continue into next, is the strong gets stronger. that goes for countries, that goes for sectors, and it goes to stocks, as well. so if you continue to position yourself in the northern hemisphere of europe, i'm sure you'll do it a lot better than -- >> does that require rerating? >> i think what's beginning to happen in europe is equity markets are beginning to reflect the fact that we've got now a
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very divergent cost of capital. before the crisis, spain, greece, italy, germany, et cetera, all borrowed very much at the same cost of capital. we different today. and that's likely to be with us for the next five or ten years. >> all right. let's go to singapore. dee, how are things working? >> you were talking to dominic about chinese equities being among the worst performing and it is the case, but today the overperformer. the outperformer i should say. the shanghai composite up half a percent at 2079. of course there is competing data. we had good trade data over the weekend, but new loan growth today showed was under expectations. so that provided a little bit of pressure. but there is a general consensus
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that it's on the mend. hang seng more foeaffected by global happenings. the other big story that we've been following is the japanese economy, it contracted 0.9%. and it is showing a tail of two different economies. the japanese economy is becoming worse while the chinese economy is on the mend. the kospi ended at 1900 providing good resistance, however, it dropped about 0.2%. the s&p asx down 0.3%. htc in taiwan was a major outperformer. at 241 new taiwan dollars. and this is because it announced a global patent settlement and a ten year licensing contract with
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apple. this is significant because this is the first company the taiwanese company that apple filed suit against. and while it's a good sign in the smartphone patent wars, we know that there's much more at stake between apple and samsung. so analysts say don't hold your breath too much. these wars are far from over. >> i think you're right. dee, thanks for that. just over an hour and a quarter into trading. weighted to the down side, a little bit more than 6:4 at the moment. last week losses 1.68% for the foot city, cac well over 2%. ftse up 7, ex-have a dax down 11. ibex down three quarterses of a percent, as well. there are a couple of stocks worth looking at this morning. here we go. bank popular up 5.25%, sas up 2.6%. averting the need for the bank
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to seek aid. growth in sales in oblgt. advertising demand bouncing back. as far as bond markets are concerned, u.s. bond market is closed today for veterans day holiday. ten year bund yields are lower. spanish yields 5.87%. we are just below 5% level in italy which we did perk up over the end of last week. ten year gilts a little lower. an currency market, euro-dollar firmly below 127 last week. just above it at the moment. dollar-yen steady. aussie dollar still 1.04 handle. sterling-dollar just below 1.59. so we'll leave you with a cliffhanger. stay tuned to find out how pimco's bill gross has described the fiscal cliff in the united states.
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president obama plans to meet with labor and progressive political leaders this week about the fiscal cliff. friday the president will meet with house and senate meetings
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to begin talks to avoid tax hikes and government spending cuts from taking effect in january. the president and republicans are at odds over raising taxes for wealthy americans. dominic is still with us. i suppose the question is what we've sort of global equities have priced in in terms of a scenario for the fiscal cliff. what do you think it is? >> i think markets have been sanguine about the whole issue and it's only after the election that we began to see nervousness. and i still think the likely outcome is the market will have to put further pressure on both sides before a deal is finally done. and i actually don't think we'll good a deal done this side of the new year. >> you yu don't? >> no, i don't. because the republicans have put themselves in a difficult position because they've actually said no way that they will endorse tax hikes. if they allow the tax increases to automatically go through on the 31st, they can then talk about tax cuts for the middle classes in january.
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it's cynical, but it may be what actually happens. >> so what happens on that? because there are some saying u.s. equitieses have already priced in the fiscal cliff and they look at it as a measuring of equities versus bond yields and say, look, clearly on that valuation we've got a lot in. >> equities got very cheap relative to government bonds, but that's because they're buying government bonds. so one has to treat that valuation with a certain at of suspicion. my view isn't so much on the short term based upon what is the right level of equity. it's more what pressure do equity markets need to put on politicians to get a deal done. >> and they only really listen to the -- equity markets seem to have a bigger impact than others. >> it's one of those curiosities. in the u.s., it's the equity market that puts pressure on politicians. in europe, it's government bond markets which would put the pressure on politicians.
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>> one of the consequences of the election of course is that bernanke gets to stay. no real change in fed policy. and whatever happens, do you see we'll get the qe is unchanged, what impact is that going to have? we might get more in the uk and -- >> we'll certainly get more in the u.s. in japan, probably the ecb. uk is a little difficult to know. but basically we'll see a very significant expansion in central bank balance sheets in 2013, more significant than 2012. and the impact of that will be a race to the bottom in terms of developed market currencies and that will put upward pressure on emerging market currencies. and i think we're already beginning to see signs of that in hong kong on the peg where we've seen some intervention. one of the themes of 2013 i suspect is going to be currency
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appreciation. >> are you specifically thinking of, real? >> i think principally the asian currencies. so the renminbi, the korea yuan and the singapore and hong kong -- >> does that mean you want to be in those equity markets? >> you certainly want to be in those credit markets. but the equity should do reasonably well as a cost of capital continues to fall there, but obviously domestic stock should probably do better than exporters in the event you get currency appreciation. >> pimco's bill gross says the u.s. decrease is deeper than advertised. in a tweet over the weekend, he described it as a grand canyon. at the same time, jim o'neill has warned clients momentum was you turning negative, but his colleague says it will be a close call.
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so we want to know what do you think, is the u.s. cliff a grand canyon worthy of issues or more of a fiscal mole hill. if you want to join the conversation, worldwide@cnbc.com, @cnbcwex, @ rosswestgate. @kelly_evans. so we'll monitor that story. meanwhile, what are the other issues? you talk about pressure on the currencies. what about on commodity currencies? like canadian dollar resource sector, what happens with that? >> that is a tougher call because we're finally beginning to see a supply side response to the bull market in commodities. it's not just a demand issue now. and i think at some stage we might begin to see that supply having a negative impact on commodity prices. and to be honest with you, when i think of the one benefit that
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could come the way of the equity markets over the course of 9 next 18, 24 months, it would indeed be lower commodity prices particularly lower oil price. >> if you had to pick now, what are you overweighting in terms of sectors and regions? >> i still think this is for equity investors this is still an issue around capital preservation. so what we focused on are the strong get stronger, focusing on quality companies, lots of cash, and of course agreeigrowing div. and where you have property negative real interest rates for many, many years, those income streams with dividends will look very, very attractive. >> good to see you. i should say you managed the money part of the nbc pension policy, as well. >> good. glad to hear it. >> so good to speak with you. dominic rossi at philadelphfide.
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public accounts committee has asked companies to give evidence on how they managed to pay such low levels of duty despite enjoying massive sales. a report by reuters last month reveal that had coffee chain starbucks has paid for income are "corporation tax in the uk for the last three years. and a new survey shows london has lost it top spot as world's biggest financial center by the number of jobs. new york has more financial employees. the first time the capital in the uk has come in second since the survey began in 1998. the poll also sees hopping congress overtaking london by 2015. and also in a separate survey, the cebr predicts bonuses for london financial sector workers will be half what they were a year ago. a dropoff in deal making, a public backlash over high pay are the main reasons cited. they put the bonus figure at 1.6
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billion pounds and predicts handouts will keep falling until 2015. and the u.s. box office was shaken but not stirred this weekend as the newest film in the james bond franchise sky fall made an estimated $87.8 million. the best ever north american debut for a bond film topping the 67.5 from "quantum of solace." sky fall has already made more than $518 million worldwide. good stuff. still to come, will greece's latest aid tranche get signed off by european finance ministers? if not, what happens. [ female announcer ] with the e-trade 360 investing dashboard.
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japanese gdp shrinks leaving the economics minister to suggest they're already in recession. one step forward, two steps back. greek lawmakers approve the 2013 budget, but germany warns finance ministers in brussels may not sign off the next aid tranche at their meeting today. former ecb executive board member lorenzo smach says greece
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needs more time. and president obama will get a lot of input this week from u.s. business, labor and civic leaders on how to tackle the looming fiscal cliff before he sits down with house and senate leaders on friday. no bond markets in the u.s. trading today because of veterans day holiday. european stock after losses of 2% or more last week are pretty flat as we start the trading week here. cac 40 down a third, ibex down a half, ftse flat. bond markets, yields lower in germany and the uk, slightly higher in spain. 5.8% italian yields on the 5% mark. euro-dollar hugging the 1.27 level at the moment. elsewhere fairly muted. sterling slightly weak against the greenback. so the greek parliament has approved the country's 2013 us a
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terry budget. p this was last night in a move lawmakers hope will unlock the next tranche of bailout money, but european officials including schaeuble saying its he unlikely eu ministers will agree to sign off on the aid at the meeting later today in brussels. and from where we are joined by our veteran brussel supporter, silvia wadhwa. why aren't they going to sign off on it? >> well, we've all forgotten about the famous troica report, haven't we, because it's still not on the table. all a about tedious and a bit annoying that we still haven't got the report out on the progress of the greek debt and restructuring battle, but there it is. everybody has ostensibly said we will not decide about greece. but we all know that somewhere behind closed doors, the decision is all but on the table
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and it just has to be signed, sealed and delivered. the biggest hurdle was clearly the greek budget. they've done what they were charged to do. and very likely either at the upcoming summit or the latest the next ecofin that we see, but probably before that, because we know by mid november sometime it gets a little bit to crunch time. the troica report should be on on the table and then the eu, eurozone ministers will sign up on it. they can do it in a conference call. they don't have to have a separate meeting for it. all a bit annoying, but at the end of the day, greece will get more time, we get maybe a better level of interest rate for some of the debt repayment and we'll get the next tranche. until then, we have to hang in there. >> smach said we need to stepped debt maturities. is that going to happen? >> yes, i think that's part of of the package. when you talk the corridors of
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whether it's in the livestock in berlin or here in brussels, that's pretty much the buzz word that everybody says they need more time, they'll get more time. we've done that to others. we will do that to greece because they've delivered at least in terms of the budget, in terms of the cost cutting measures, in terms of the announcement of cost consulting measures what we want from them and in any case, whatever it takes, they do need more time otherwise they can't tackle the tasks. >> s. let's swing on to the other topic of discussion we've seen in brussels. the eu budget for 2013, failed to agree on extra funding for this year. i was reading this morning it's the 18th -- here's a stat for you. the 18th successive year that auditors have failed to approve the eu's accounts. i don't know why we bother. >> arguably you could say that.
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national budgets don't look much better. the overspending in many of these countries is probably the same. we do have this old argument between austerity and between funding projects. even when he you look at the clash between the uk and germany over whether the budget should be beefed up or shouldn't be beefed up, it's always very simple the headlines say don't give them more money in brussels, they're just wasting it on senseless banana bending regulations and new chimney sweep laws for the whole of europe and wasting the money on on there. it doesn't quite work like that as we all know. the projects that are being funded from the eu, from the eu commission, structural project, infrastructure projects. so if you don't give more money to that, then something's got to give. and even countries like germany or the uk are benefitting from some of these projects that are being put up. but the headline of course is
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very nice. always saying don't give them more money, we have austerity budgets, so let's have an austerity budget for the eu, as well. sounds good, but it ain't quite that simple. >> no, but then nothing about the eu ever is that simple. silvia, we'll catch you a little later. for now thanks very much as ever. and i mentioned that the smach interview. that's what kelly has been doing. let's remind you what he said about greece. >> austerity is necessary. no way out. but it requires much more time. that's the results we're seeing. it requires much more time and much more bridge loans. so lengthening maturities is the way and lower the debt. >> and kelly is with us now. missing you this morning, k event l. now, you did make me laugh because i did hear you suggest
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to him that maybe it would be better if germany left chlt eu or something along those lines. that did make me smile. >> well, ross, hello. i'm missing you, as well. over here across town at the chatham house where they're having a conference all day about deleveraging which is basically trying to get at the nub of this problem, how do you reduce debt loans without undermining growth. greece hasn't figured it out yet as i asked professor smachi. is there another way out that we haven't yet considered. he seemed to indicate lengthening maturities and saying it needs to happen across the official sector holdings, that it's time for europe to do its part. so i said if you're saying were rowing rates immediate to be lower, the quickest way to depreciate the euro would be for determine any to exit. yes, he sort of laughed that one off, as well, said germany sees the benefits obviously of staying within the currency union. but i want, too, to pivot from greece to spain because what's happened is interesting.
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he said, look, greece would only take a couple billion dollars to throw money at the problem, make it go away. there's no reason why we should keep carrying this out. and i said, okay, but what about the precedent that sets. what we're really talking about here isn't just the situation with regards to whether greece can continue to fund itself, but what happens if spain is next, if his own italy is next. here's what he had to say regarding the health of spain and whether the country needs to ask for a bailout. >> the economy already requires it. business invest p and consumption is flat. they need lower interest rates. the only way to do that is to request a program yesterday i would say. >> so spain needs to ask for help yesterday. the spaniards may feel a little differently, but you can't help but have the sense as you watch the greek situation unfold that it would be very difficult for some of these bigger economies with similar problems to avoid the same fate. >> are they giving you enough
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tea and biscuits? >> i just had a couple glasses or cups of tea. so, yeah, i'm all set here. i'm also quite excited because coming up in the next hour, we'll have a little bit more from that interview with smachi where we talk about the parallels between europe's debt crisis and what's happening with the fiscal situation in the u.s. >> you will find any conference event in london, there is copious amounts of tea and business kutiscuits biscuitses. >> i've become a tea drinker. you've ruined me. i'm all tea from here on out. >> fantastic. things are going according to plan. we'll catch you a little later. thanks very much. other things we'rele following, angela merkel has given her nod of approval to portugal. she also states portugal's lenders have approved all reviews of the cup so far.
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tax revenues fell because of the deep recession. >> just remind you what's going on in the rupee. hit an almost two month low after data showed a record trade deficit in october and a contraction in factory output in september. data points coming up in terms of the economy and all three have disappointed. first september figure at minus 0.4%. this negative reading is actually much lower than trade expectations which had pegged it at a growth of about 3.2%. reasons fors the disappointments, manufacturing, capital goods, and consumer
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goods growth. that combination has resulted in the figure coming in at minus . 5 -- 0.4% fp. we've seen weak exports, exports have fallen by 1.63% and imports have rebounded by 7.4%. and the october trade deficit has actually jumped quite a bit on year on year basis and sitting at record levels. that's the reason why we've seen the rupee appreciate a bit. we also got the october cpi figure at 9.75%. so a bit disappointing that there is no easing. it is thought there would an
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marginal down figure on the cpi, but it that hasn't come through. >> also 100 licenses up for grabs. the government's, what, trying it to bring in $7 billion here, but will the proceeds come rue mote will he close to this? >> the expectation is it's unlikely to come close to where the government has expected. as of now, the latest that we understand from sources is that three rounds of actions have taken plaes and the bidding has actually been very lackluster. so we have to wait for official confirmation, but there are a couple reports that indicate that they have not seen bidding at all and the others have been pep ti tepid. so nothing official, but sources say it has been very lackluster. >> it's davali.
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>> yes, it is. >> so how do you say happy -- what he another phrase that you would use? >> we say happy davali and it's also the hindu calendar new year. festivities all around. that's the reason we're in colored clothes. >> hooks fantastic. have a great time. thanks, reema. now, apple and htc bury the hatchet. companies have settled all their pal tent litigation agreeing to a broad ten year licensing agreement. the deal comes after htc suffered several legal set backs including a ruling by the international trade commission that apple's iphone and ipad didn't enfringe on its patterns. last month htc cut its fourth quarter outlook. apple is still embroiled in a pattern dispute with samsung which is appealing a u.s. court
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ruling earlier this year. htc up 6.8% respect apple up 0.4%. a and in japan, signs that o olympus may be moving on. >> thank you. olympus says it has swung back to a second squaur profit reversing a an earlier loss of $388 million. cost cuts including slashing 7% of its workforce helped to push up profits at the firm. brisk sales of medical devices also boosted earnings. the better than expected figures eased concerns about its weak balance sheet which was reallily bolstered by a capitalen jeks from sony. for the full fiscal year, olympus raised its forecasts to $100 million from $88 million. but the firm chopped its operating profit and full year revenue outlook due to fast trade in compact digital camera
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sales. so we'll have to see how investors react when markets open tomorrow morning. back to you, ross. >> okay. thank you very much. the market cap of australia's top insurer eroded on news that losses from super storm sandy will cut deeply into its bottom line. qb says it's now looking to raise half a bell i don't know dollars in debt to make up for around 300 to $450 million in losses from u.s. storm damage. the insurer still expects 30% more annual profit than last year, but it's a big step down from the strong profit picture painted through the first half. more corporate earnings there japan. in the philippines, ayala third quarter figure. i said i can't, malaysia and singapore markets closed to celebrate the festival of lights. still to come, this week's installment of our trade links special. we'll talk about the challenges of building a start up abroad with the founder of the
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eco-friendly diaper company.
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establishing a business can
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be a daunting task particularly to start ups and small businesses as the founders of an eco-friendly diaper company found out. kelly started asking by what challenges they encountered when they decided to move their business from australia to the united states. >> there was a very unique visa for australians going to america to create a business and create american jobs. and we had two hurdles. one was my wife is a canadian. she had a work visa for australia. so we had to satisfy requirements. but then our first investor was a resident of australia, actually a citizen of denmark at the time? no, he was from amsterdam. >> but it's so telling because so many investors these days are so mobile. and you never would have thought necessarily that moving your company, making what was effectively a person or i guess a business decision all of a
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sudden raised this very serious issue when it comes to funding. >> so we managed to work around it. he loaned the business money and it worked out great. so he ultimately stayed with us. but it was one of like a million things that challenged the business. >> and i won did der when that comes up or just in general when you're moving a company from australia to the u.s., if it opens your eyes to the extent that it would be nice if the laws could be inchly filed. perhaps they have to exist in the first place, but it certainly doesn't help the investor or entrepreneur who is trying to start and run and grow the business. >> we picked america because it's the home of entrepreneurs and we had an australian idea, but we wanted to get to a much bigger market. and the basil laws are very hard. you see microsoft and others lobbying like mad. for us it was really surprising. i thought it was a lot more fluid p. >> and what's interesting is for
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a company that's in the huge, you still did a global business. so how global is the company and what challenges have you run into as you've looked to expand is this. >> so we're in the u.s. and canada and now in the uk, france, germany, spain. and challenges, branding challenges are fascinating. when we moved to america, we thought we'll call it napis and they were like is that a napkin? so we need to localize. so it's been a challenge. >> what about on the financing side? similar challenges, cultural differences? what barriers there? >> as an australian, going to the u.s., telling our story, we've moved 10,000 miles. we want to fundamentally change the world of napis diapers. it was actually quite easy to raise money because the american investors really get fired up about people who take risks and
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we were taking a massive risk moving 10,000 miles from home. so that was really pleasing. what he we found now is seven years in, we have had a huge revelation to build anything really profound and great, we want to be in business 15, 30 years and we don't want to sell. we want to recap the company. so we've had these great conversations with investors to say what do you think about a 30 year view. would you like to invest in for us 30 years? and you're not going to get a big pop, you'll get some dividends along the way. >> and how do they respond? >> there's appetite. because people understand in a natural world, nothing grows as fast as a company is expected to grow from start up to exit. nothing grows in five to accept year accept yeears. >> tune in next for for more in our trade links series.d.
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>> tune in next for for more in our trade links series. a deal has been reached with the regulators to settle. they'll pay a fine but less than the feingold man sax paid in 2010. jpmorgan isn't expected to admit any wrongdoing. stock today is marginally down in frankfurt. new york governor andrew cuomo reportedly plans to ask the u.s. government for at least 30 billion in aid to help new york city and other areas recover from hurricane sandy. the new york sometimes suggest cuomo aids suggest the state needs more than 3 billion just to repair bridges, tunnels, subway lines. sandy is has estimated to have cost more than $50 billion in
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damage. president obama is expected to view the recovery efforts on thursday. lk ahead martin's incoming ceo has resigned after he had a close personal relationship with a subordinate. he will now be replaced by huson who will take on the role of acting president and coo. all three major defense contractors have women at the helm. lockheed martin stock flat. and aeg is teaming up with stub hub. aeg is the owner of more than 100 venues worldwide including the staple center los angeles. starting next year, customers shopping for tickets on the service will be able to buy or sell them through stub hub, and online ticket resaler. stub hub charges commissions on each sale and the stock in frankfurt down around a third of
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a percent. and president obama will be doing a lot of talking about the increase this week. he plans to meet with labor and progressive political leaders tomorrow, business executives on which is and civic leaderses on friday. that's also the day the frommed is scheduled to meet with house and senate leaders to begin talks to avoid tax hikes. they want to raise taxes for wealthy americans. bill gross says the fiscal cliff is deeper than advertised. in a tweet, he's described it as more like a grand canyon. jim o'neill has warned clients that positive momentum was turning negative because of the cliff all those his colleague says the cliff will be solved by the year's end, although it will be a close call. so we want to know what you think. is the fiscal cliff a grand canyon or more of a fiscal mole hill.
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join the conversation. worldwide at cnbc.com, @cnbcw , cnbc.com, @cnbcwex, @ rosswestgate, @kelly_evans. kelly will be back with us during the second half with the chatham house. after losses last week of around 1.6% for the ftse, 2.% for the dax, pretty mixed today. bond yields just coming back a bit for spain. in italy, they're on that 5% mark. they are lower for bunds down at 1.3. currency markets, euro-dollar on the 1.27 mark this morning, sterling slightly weak against the dollar, as well. dollar-yen barely moved after the gdp numbers. we'll keep our eyes on brent and nymex, as well. i can see brent down slightly this morning at $109. and nymex currently tracking lower at $85, as well.
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platin platinum ticking slightly up. so the oil market report is due. we'll get analysis after the break and talk a lot more about the fiscal cliff. we'll get into tablet wars. second hour of "worldwide exchange" is commencing in just under three minutes.
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the world's third biggest economy may already be in recession. and greek lawmakers approve the 013 budget, but germ any waany unlikely to to sasign off on tht tranche of aid. and urging the extension of debt maturities. president obama will get a lot of input from leaders on how to tackle the fiscal cliff.
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we're into the second hour of the first day of the week here, trading day 69 week on "worldwide exchange." president obama will be doing a lot of talking about fiscal cliff. he plans to meet with labor and preliminary leaders to him with business executives on wednesday, friday with house and senate leaders. the president and republicans are at odds over raising taxes for wealthy americans. we'll delve much deeper into this at 10:30 eastern. we have a guest who thinks that unlike last year's debt ceiling negotiations, u.s. might have actual solutions to the fiscal cliff debate. so that would certainly be a
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change of fresh air, as well. mean while the japanese government may be forced to lower its outlook for the economy after a report of a fall in third quarter gdp. at this rate japan might already be in recession. a likelihood that the economics minister has been unable to deny. the government's attempts at a moderate recovery has been made difficult by chinese tensions. pressure mounting even more for the bank of japan to act. analysts say central bank likely to hold off until december 19th or 20th shortly after the u.s. fed is due to meet. it's the start of a new week. u.s. futures at the moment are indicated just slightly higher start. the dow at the moment is 20 some points above fair value. nasdaq nearly 8.
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s&p 500 at the moment just over 2 points above fair value. remember, losses of 2%, 2.6, 2.4% respectively if for the dow, nasdaq and s&p. on the dow jones ftse cnbc global 300, absolutely flat as we go through the session. we had losses last week of eefr 1.5% for the ftse, 2% for the cac, 2.7% for the xetra crawled green.the cac, 2.7% for the xet. we have crawled back in to some green.for the cac, 2.7% for the dax. we have crawled back in to some green.1.5% for the ftse, 2% for cac, 2.7% for the xetra dax. we have crawled back in to some green. it tannialian yields still on t short mark. spanish yields have edged up. not far away from 6%. 5.87%. no treasuries trading today because it is veterans day holiday in the united states. so the bond market is closed. stocks are open. ten year gilt yields slightly lower. euro-dollar not far away from the 1.2690 two month low we hit
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on friday. on the 1.27 mark at the moment. dollar-yen we hit 79.07 on friday, which was sort of a two week low. not a big reaction to the japanese gdp numbers. aussie dollar steady. so that's where we stand here at the moment in europe. what about in asia? deidre has more for us in singapore. dee, what kind of day have you had? >> it was very mixed. as you can sell by the boards behind me, we had different data from asia's two largest economy. you can tell where the good data came from, greater chinese markets did notch some gains. shanghai composite up about half a percent. and hang seng up 0.2%. we had that better than expected raid data over the weekend. today lower than expected new loan growth in the main land. however, banks just shrugged this off because the consensus is that the chinese economy is on on the mend and of course we're just days away from get
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being the names of the gnaw leader that will be taking the helm of the chinese economy. so some cautious, but for today, it was a gain. in japan, we had disappointing economic data, gdp shrank by 0.9%. so reversal of fortune in these two economies. also the stronger yen has kept the pressure on exporters in japan, so that was a big drag. the asx 200 down about one third of 1% and sensex disappointingville output data here keeping a cap on the markets. but it's been fairly flat since that data came out. and in taiwan, fell about one third of a%, but htc the outperformer. you've seen the phones. they rose limit up and this is after it settled its global patent dispute with apple.
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and that's just something you don't hear fre often,very often dispute being settled. >> and ending with a licensing agreement. so not only have they settled the dispute, they're now doing business together. so there we go. >> some analysts say that htc still has a long way to go. it is a minor player relatively. >> i actually haven't seen their phones. but i am well-known as that issue. so thanks very much for that. on the agenda today in the states, bond market is closed for veterans day as is the federal government. so no economic data. just a handful of companies reporting results. home builders and weatherford international. we've also got an iea report later but they've said the u.s. will overtake saudi arabia and russia to become the world's biggest global oil producer by 2017. this is the international energy
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agency. so becoming a net exporter. joining us is tom bergen at reuters. if that forecast is right, how does that change the politics of oil? >> good morning, ross. yes, that's a prediction now that a lot of analysts have been making over recent months. so it's a pretty broad view that the u.s. will by the end of the decade potentially become the biggest oil producer in the world. there are also predictions that just factory and other things like energy efficiency, basically cut it reliance on on oil imported from outside from immediate neighbors mexico and canada almost to nothing. and if america is not emporting as much oil as it does currently, perhaps for energy to be such a focal point of its
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foreign policy won't be so large. and already you have exactly within the oil and gas industry pushing the case for shale on the basis that it would save the country a lot of money on overseas military expenditure. >> if you take in that oil, shale gas together, how much is that revolutionizing the american economy and also the global gas and oil industry itself? >> we're already seeing some big impacts in terms of when you see home consumers shifting from diesel to heat their homes in the u.s. to gas, we've seen a lot of shifting and that's certainly impacted oil demand in the u.s. but perhaps the real game changer could be yet to come. there is a lot of talk about natural gas vehicles. we're already seeing moves on that. the figures that the iea is putting out today, these really
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don't take in a major shift towards natural gas as a transportation fuel. p but a lot of people in the u.s. are predicting this could happen and that's on the basis oil remains reasonably expensive and gas is very cheap. if that happened, we could be looking at a game changer and the figures could look very different. >> where does that leave the take did tig al producers? where they -- who will be their new customers? >> i wouldn't say they're getting excessively nervous yet. they're not complacent about shale and the possibility for a shift to gas. because iran for example they've shifted a lot of it vehicle fleet from oil based fuels to natural gas. but china is predicted to continue to show strong demand, although not perhaps at the levels that we've seen in 2004, 2008 period.
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so not really a prediction for price collapse and today the iea is increasing its 2035 oil price. going from 120 to 15. today that's not so far ahead of its current oil prices and certainly wouldn't match inflation. so there does seem to be a view that perhaps the spikes and extreme prices we've seen sometimes in the past maybe won't be a feature of the future. >> good to see you as always. still to come here, kelly has been out speaking to smachi about greece, spain and europ s kred ability problem. [ female announcer ] want to spend less and retire with more?
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. the headlines this morning, president obama meets with u.s. business labor and civic leaders this week to tackle the looming fiscal cliff before he sits down with that house and senate leaders on friday. and lorenzo smaghi says greece needs more time. and japanese gdp shrinks for the first time since last year, the
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economics minister warning the country may already be in recession. still to come, best buy fires the latest shot in the global tablet wars. can the struggling chain flex its muscle against the dominant players apple, samsung and amazon. we put the retailer's devices to the test.
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bond markets are closed state side. stocks are trading. slightly up start. the s&p and nasdaq down nearly 2.5% each. as far as european stocks ahead of the u.s. open, fairly mixed at the moment. cac 40 down 0.2%. bond yields lower in germany and the uk. slightly higher in spain and italy. spanish yelleds just under 5.9%. now, apple and htc have buried
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the hatchet, settled their outstanding patent litigation. the companies have signed a broad ten year licensing agreement. the deal comes after htc suffered severe legal set back backs including a ruling by the international trade commission that the iphone and ipad didn't infringe on its patents. h h htc up 6%, apple up half a percent. and best buy is jumping into the ring. the u.s. chain begins selling its own branded tablet yesterday. the insignia flex retails for $249, has a 9.7 inch screen and runs on the new android ice cream sandwich operating system. quite a name. joining sus is bridget kerry.
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so we have a wealth of choice here in this 7 inch department. who is going to expact most in terms of spending from the consumer? >> right now it's half apple and half everyone else. i have samsung, amazon, everyone wants to get in the mix. tablets are eating in to the laptop market. >> where does microsoft's new offering come in amongst this? >> they just had a new operating system that is designed to work on tablets. so you know they have to get in the mix, too. they have a large ten inch tablet really for people who
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want to work on the go with a keyboard, you're seeing a lot of laptops that are hybrids where you take the tablet apart from the keyboard and take it with you on the go. so that's where microsoft is hoping to get an edge. people wanting to totally replace their laptop with a hybrid or tablet. >> and how much does price pay a part? >> a big part. people will be buying tablets more than ever this holiday. it was big before, but it will be bigger now because of this new seven inch area. the kindle is about seven inches. google has one. because the price is so much cheaper. it starts at around $200 for the smaller ones. so if you didn't think about it before, you're thinking about it now for sure. >> best buy will still carry rival devices. what's the right strategy for them in terms of we sell ours
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and how many of the others do we sell? >> best buy right now is fighting among the notion that they're a showroom like websites like amazon. they'll have the better deal in their stores. so right now they're trying this tap tick of saying, hey, you want a tablet, we have an android tablet of our own about for $250, much less than the $500 ipad or the $500 surface tablet. so they're just hoping to get in for people who want to jump in the tablet market and find it in their store. >> how much under threat is apple? >> if you look back a quarter ago, they had two thirds of the market and now they have about 50% of the market. so everyone is trying to jump in on their game.
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starter price is $330, more expensive than the other smaller tablets. so now consumers are wondering, well, there's that apple greatness, but you can do the same things on a cheaper tablet. so it's more coffin fusing now to pick which one and the prices are cheaper for the competition. >> apple has just come out with a new full sized ipad. the screen on the ipad mai mi i some people are complaining about. >> it was a bit of a moment where you had loyalist feeling down. so you have to wonder my twice is outdated. if you're looking to the ipad mini, apple loyalists know if you look closely, the hardware in the screen and processor isn't as good as that full size ipad.
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so there a hesitation to jump in. at least there is good value in apple products if you want to them back in a year. >> bridget, thanks for that. have a good week. later on closing bell, they'll be speaking exclusively to the to wit he co-founder jack dorsey, find out what he has to say about mobile payments. 4:00 p.m. eastern time. some of the other thing we're watching, sec reportedly won't charge any jpmorgan executives in a pair of probe hes related to the fraudulent sale of mortgage backed securities. the bank reached a deal to secretary the investigations. jpmorgan will reportedly pay a significant fine, but less than the $550 million goldman sachs paid in 2010.
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the journal says jpmorgan isn't expected to admit ted admit any wrongdoing. and andrew cuomo reportedly plans to ask the u.s. government for at least $30 billion in aid to help new york city recover from hurricane sandy. the state needs more than $3 billion just to repair bridget, subways and tunnels. sandy estimated to have cost the new york area more than $50 billion in damage. the president is expected to view the recovery efforts on thursday. and president obama will also be talking about the fiscal cliff this week. he plans to meet with labor and political leaders tomorrow, civic leaders on friday which is also the same day the president is scheduled to meet with house and senate leaders to begin talks to avoid tax hikes and government spending cuts from taking picture in january. fiscal cliff also a subject of discussion around the world
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including in central london. kelly has been speaking to lorenzo smaghi about the issue. i'm sure you're not with me, but i know you're having a great time there at chatham house. >> i'm sorry, too. i'm consoled by the fact there is a great lineup here and that it's a topic near and dear to my heart, which is deleveraging. in particular as it comes to the question of just what strategy can economies pursue in order to reduce their debt levels without hurting growth. the u.s. actually looms front and center. so earlier we spoke with now professor smaghi. he's how at harvard. this allows will him to perhaps be a little more forthcoming than some of his colleagues still gainfully employed on the board. but after indicating that what greece needs is maturity extension, that what spain needs to do is ask for a bailout yesterday, i asked what about the u.s. and here's what he had to say. >> first there's a lot of
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uncertainty and this already creates problem for the world economy and for investors. second the way in which the cliff will be resolved is clearly very important for the u.s. economy and therefore for the rest of the world. >> it's interesting because this question as to what is the best way to stimulate or support an economy going forward really is illustrated by what's happening in america right now. you have people saying perhaps the fed will have to do more if we did go over the fiscal cliff. does there need to be more accordi coordination around the world? >> it's a dangerous situation to be the policy of last resort. so to be in a corner. that your policy is determined by everybody else. and the way in which the fed is moving, that it's become the only game in town basically taking away frern to solve the
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problem, it's a fiscal problem. and this requires a medium term credible scenario. >> do you find parallels between the u.s. and eurozone? >> maybe the ecb is putting more pressure on politicians to solve their own problems. i think the fed another a certain point will have to put pressure on those who are responsible. they cannot just take on their shoulders burden which is are not of their own responsibility. otherwise they will finance the government. and so i think in the next few weeks, the fed will be faced -- >> but at the end of the day, if the fiscal authorities don't get their act together, the fed will probably step in. >> i don't think that will help reassure the markets or reassure citizens.
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that won't mhappen in the mediu term. >> we've seen it before where the monetary authority will step in where the democratically elected one cannot. we're seeing in japan a very interesting case where the fiscal and monetary authorities a are. i was trying purposely of course to get him going by asking whether there should be greater coordination because of course i said espn is still this concept that needs to be sang crow sink when it comes to central banking. but it is clear going forward that perhaps a lot of the fiscal side of this, that's problematic and we'll have wished we devoted more attention than the monetary side. >> independence is not-6 will they're not strictly independent because you have to work. monetary policy to be effective has to work alongside fiscal policy. you're not completely independent, are you. >> well bs a, and we've seen be
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bernanke to basically put the ball back into congress' court and say figure this out. don't expect we can solve the world's problems. >> kelly, have a good session town there at chatham house. keep with the teas and biscuits. still to come, the latest on the eu budget talks from brussels. and more analysis on the fiscal cliff.
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headlines today, president obama will get a lot of in-sput this week from u.s. businesses, labor and civic leaders on how to tackle the looming fiscal cliff. this before he sits down with house and senate leaders on friday. japanese gdp shrinks. and may be in recession. and it's one step forward, two steps back. greek lawmakers approved a 2013 budget, but unlikely to sign the next tranche of aid in their meeting today in brussels. a
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very good morning to you. welcome to the start of your global trading week here on cnbc. president obama is planning to discuss the if being this we fi week. he'll meet with business leaders and house and senate leaders to begin bunl the talks. the presidented a republicans are at odds over raising taxes for wealthy americans. >> i'm not wedded to every detail of my plan. i'm hope to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenges. but i refuse to accept any approach that isn't balanced. >> and i'm proposing we overt the fiscal cliff together in a manner that ensures 2013 is fine and he would year that our government comes to grips with
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the major problems facing us. rebecca burke joining us for more. good to see you. so will we be fighting about tax rates for the budget? >> that is absolutely going to drag the discussion much further than we would like. interestingly whereas during the debt ceiling debate last year, the republicans held their ground to the point of being obstructionist. this time around i think we might see that from the democrats who are going to insist that tax credit for people making more than $250,000 be revoked. and allowed to expire. obviously republicans insisting that that tax cut be extended for as long as possible. >> so how do we square it?
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>> that's the question that everyone here on capitol hill, in the white house that's the question that they'll try to hash out. over the next few weeks and even months. the interesting thick is that democrats will be so insisted that the tax cuts expire for the wealthiest melds that we might see congress go over the fiscal cliff in part, not to the point of it becoming any sort of chaotic thing, about there is an opportunity to push it beyond january 1st if republicans are not willing to explore some revenue options by letting tax cut s expire. >> someone said to me we could go over the deadline and then the tax rates automatically go in and then we get an agreement and republicans would then claim the republicans would be bringing the tax rates down
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again. does that figure into political thought? >> it absolutely is figuring into lil thought. democrats in this case are willing to wait for a little bit longer than they were during the debt ceiling talks. they don't feel the sense of urgency that you might expect. they're willing to wait until republicans are maybe going to move a little bit on their position. the democrats after this election that we just had feel they're in a very prime position and that they have a mandate from the american people to enact their policies during these discussions. on they'll play their hand i think to their full advantage. >> what kind of hand does john boehner have? where sg it leave him and his ability to control the tea party
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wing? >> it actually puts skron boehner in a good position because during the debt ceiling talks last year, he had a lot of push back from the very far right of his party in the house. the tea party caucus, for example. this time around we won't see the same dynamic at all because the tea party caucus and far right have lost a lot of political capital in light of the election. so what we've already seen is speaker boehner talking to republicans in the house, putting his foot down early and saying we're not going to have that same push back we saw. instead, i'm going to tell you what we're going to do and what this deal is going to look like and you'll fall into line. >> he got criticism because he negotiated a deal and then went back and tried to sell to the party. does he naed to do he need to d
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way around, get a set position and then go into discussions? >> i think that is the thinking this time around. and he has certainly recognized that. they've been having discussions already. and congress hasn't especially returned yet. congress returns to washington tomg. but already last week speaker boehner had a conversation call with members of the house republicans kind of explaining what this discussion is going to look like. already trying to sell talking points to his own party. so we're seeing those discussions start much earlier. >> we'll see what happens. but you think we'll be dealing with this just over into the new year which will is a bit of a shame. rebec rebecca, thanks for joining us early this morning. a number of comments as you might expect about this. bill gross says the u.s. fiscal cliff is deeper than advertised and described it as a grand canyon.
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jim o'neill sayses positive momentum is turning negative because of the cliff discussion and his colleague writes that the cliff will be solved by year's end, although a very close call. so what do you think? some of have you already shared your views. paul written into say the cliff issue will go right to the wire and a fudge will be agreed. you can imagine what would happen in any other country which refused to raise taxes with such a difference set. and don says obama will get plenty of advice about how to address it just as in his first term, he will ignore all of it. so a couple different opinions. e-mail us worldwide@cnbc.com, @cnbcwex, @ rosswestgate. it's the start of a new trading week. u.s. futures pointing to a moderately up start. 23 above fair value for the dow, nasdaq 9, and just over 2 points above fair value for the s&p
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500. global 300 is flat. ex-take dabs and ftse with slim gains. still to come, greece has approved its latest austerity budget, so will finance ministers agree on the next tranche? perhaps not came. another business win. i'll set up the video conference to iron out the details. this cdw cloud collaboration powered by cisco is pretty amazing. we interact with our offices, anywhere, anytime. charles, you're one of the greatest losers of all time. thank you.
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live nation might be feeling under threat today. teaming up with stub hub on a new ticketing service that aims to rival ticket master and live nation. am eg owns more than 100 venues worldwide. customers will be able to buy or sell tickets through stub hub, the on online ticket resaler. stub hub makes money by charging big commissions on each sale. aeg will then collect and unspecified amount on each transaction. so this is a big sort of challenge to live nation's pre-imminence. the stock closed down 1.5% on friday in united states. ebay today not doing an awful lot in germany. just down 0.2% of 1%.
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a new method of payment as well for ticketing companies completing the partnership. so keep your eyes on that. greek parliament has approved the austerity budget late last night in a move lawmakers will unlock the next tranche of bailout money. european officials including schaeuble say it's unlikely eu ministers will agree to sign off on the aid at a euro group meet which go begins later today in brussels. silvia is there as ever with these meetings. you better explain to everybody why if the greeks have done their bit, there is still no signing of any agreement from the finance ministers. >> the famous line inching closer. we heard that the troica report
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is done. so presumably in the next few days they will sign up on it, but the buzz word, everybody said we need the troica report first, we need to seat findings. then we sign up on the next tranche. maybe a comfortable interest rate on some of the debt repayment about so it's a question of timing. sadly the troica report maybe came in a few days too late for this eco fin or maybe it was aimed to come in it too late for the ecofin. but they don't have to have a separate physical meeting for that. they can simply do it over a conference call. so it's more a question of
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formality than separate decisions. you talk to anybody, even in berlin, even in the german finance ministry, it seems clear that the tranche will be transferred and slight improvements on the condition will follow suit. >> also discussings on the budget for 2013, unable to agree on extra funding. but the accounts here, this is a great stat, haven't been signed off consecutively for the last 18 years. and here they're asking for a budget rise of 6.8% in 2013 which seems extraordinary when the whole continent is being put on austerity. >> i had a discussion earlier on the show when jeff said how can we sell to the people that the fat cuts in brussels get more money. it's not that simple.
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it's a lovely headline that works especially well in the uk because brussels and fat cats are so popular there wilthere, that 1i6rsimple. a lot of funding for the economically weak regions, now it's the eu budget rather than through national budgets. and this is where the increase is supposed to be going to, not for new office buildings, not for raising the salaries for the meps, et cetera. so it isn't quite that simple. on the surface, yes, it seems absolutely insane to say everybody has to save moneynd a we increase the budget, but the theory is increase the budget so we can cap money in the national budget. doesn't always quite work out like that but that's the idea behind it anyway. >> we'll go on and on i expect. thanks for that.
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good to see you. and talking about accounting, starbucks, google and amazon facing public questioning by british lawmakers over tax avoidance. they are asked to give evidence on how they managed to pay such low levels of duty despite massive sales. and reminder of our headlines. president obama meets with u.s. business and civic leaders this week to tackle the fiscal cliff before sitting down with house and senate leaders on friday. lorenzo smaghi has told cnbc that greece needs more time. and japanese gdp has slunk ohru the country may already be in recession. still to come, the start of a new trading week. we'll be in chicago to find out what's on the agenda. i always wait until the last minute.
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free streaming quotes, all your investments, positions, and even your trade ticket are all on one customizable page.
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see the 360 investing dashboard at e-trade. no jpmorgan executives will be charged. the bank reached a deal last week with regulators to settle the investigations. jp more f pchlt mor fap more fa fine, but less than $50950 million that gold man's paid. and jachlt p who are began isn't expected toed admit any wrongdoing. stock just down about a percent. andrew cuomo reportedly mans to ask t plans to ask for $30 billion in aid to recover from hurricane sandy.
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hurricane sandy estimated to have cost new york area more than $50 billion in damage. the president is expected to view the recovery efforts on thursday. and lockheed martin's incoming ceo has already resigned after an ethics probe revealed he had a close personal relationship with a subordinate in violation of the company's code of conduct. he had been set to take over in january and will be replaced by marilyn houston. with her appointment, all three major u.s. defense contractors now have women at the helm. lockheed martin stock in frank further flat. u.s. bond market is closed today for veterans day as is the federal government. so there is no economic data. we just have a handful of companies reporting results. home builders d.r. horton and beezler and the oil services firm weatherford.
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u.s. futures pointing to an upward tick at the beginning. slightly higher at the moment. just under 11 points for the dow, the nasdaq caught up just nearly 7 and the s&p at the moment caught up just over a point. ben liechtenstein joins us with his preview of the day and the week. hope you had a good weekend. the s&p down 2.4% last week. do we continue that losing streak this? >> well, if i knew for sure, i always jokingly say i wouldn't be be sitting in this chair right now. but certainly the market seems to be weighted still heavy. there was a lot of energy associated with that selloff. so you mentioned the 2% down side activity. i really notice more the energy associated with it rather than the actual decline or percentage-wise. again 1430 pre-election into
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tuesday night, wednesday morning, sell side activity all the way done to 1369. a lot of weakness friday. we are seeing a little bit after a bottom forming right now, or short term bottoming. we've been unable to breach friday's low in the overnight session. so we have yet to get below friday's low. about still yet to see any real bounce at this point. but still a ways off of major levels of support right now in the dow and looking at this 12,000 level, that's the next big level of support from the beginning of june and it was a speek lo spike low. but big week in terms of data, so i think the energy still remains to the down side. i think we have the retail sales on wednesday with ppi and then
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cpi on thursday. so all those numbers are big right now. we're also going to be keeping an eye on the dollar. traeders last week were talking about the disconnect if you will from the dollar and the stock indices as we were seeing the strong sell side activity that we were just talking about. the dollar really was just parked. sideways right around that 81 even level. i'm not sure about that's because the sell side activity that we were seeing was more profit taking and the money wasn't moving around, if you will, so it wasn't coming out of stocks in to dollar. also the lack of participation in terms of the volatility index. so a little uncomfortable for traders because they were normedly used to seeing that high correlation. >> it feels like we'll just be hostage to events and the one event here is going to be just the discussions on the fiscal cliff. do you think people will be
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unwilling really to do an awful lot as they just wait and see what happens on capitol hill which is i know sort of a rather dull way to look at things. >> i think there is a bit of awaiting game going on at this point, but i still think that people are trading right now, starting to see volatility coming back into the market a bit. subpoena experiencing 20 handle ranges. so although there will be some uncertainty concern that could fuel the fire, as well and i think that's been one of the contributing factors to the down side activity we saw last week. election results and concerns about fiscal cliff. >> ben, good to see you as always. that's just about it for today's "worldwide exchange." coming up next, "squawk box."
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and you pick the price that works for you. great. whoa, whoa, jamie. watch where you point that thing. [ mocking ] "watch where you point that thing." you point yours, i point mine. okay, l-let's stay calm. [ all shouting ] put it down! be cool! everybody, just be cool! does it price better on the side? no, it just looks cooler. the name your price tool, only from progressive. call or click today. i got you covered. th oh, you're so welcome.
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. good morning. today's top stories, bulls will try to battle back as the stock market comes off one of it worst weeks of the year. and a world of worry around the looping fiscal cliff in the united states and doubts about whether greece will get the aid it needs before it runs out of cash. it's monday, november 12th. yesterday was veterans day. "squawk box" begins right now. good morning. welcome to "squawk box." the major indexes finished down more than 2% last week. it was the worst weekly shutting for